No sooner did Finance Minister P Chidambaram announce the Budget 2007-08 proposals than Maruti Udyog Ltd, India's largest car maker, said it will hike car prices from March 15.
"The Budget lays lot of emphasize on education and agriculture. It is very neutral on automobile. I feel the government is trying to suppress the demand of auto sector as already the interest rates are rising," Jagdish Khattar, managing director, Maruti Udyog Limited, had said earlier in his reaction to the Budget proposals.
Ford and Hyundai likely to follow suit and hike car prices too.